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5 Tips to designing effective performance appraisal systems

by , 08 January 2016
Performance appraisal (review) systems are a vital tool for managers as they can help to Identify and remove any obstacles to achieving your company's goals.

Now, in order to implement a performance appraisal system, you'll first be required to design one.

Here are 5 tips on designing an effective performance appraisal system...

Tip#1: Keep it simple

You and your employees need to buy into the system. So, in order to do this, you must make it relevant to them and use simple language.

Tip#2: Customise your measurements but keep your format consistent

The performance management systems must include all employees, but just remember that the criteria you use to measure the performance of a cleaner should be different from a computer technician in your company.

Now, even though the criteria might differ, ensure that the format for measuring performance remains the same.


You're obliged to do performance reviews. That's why you need an extremely easy to use, highly efficient system.

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Tip#3: Give it time

It can take a couple of years before managers and employees are comfortable with the review process.

Make sure to provide ongoing support to your employees, deal with complaints and any other issues effectively and efficiently and monitor the
quality of evaluations so as to ensure there's no unfair discrimination by any managers during the review process.

Tip#4: Keep it fresh

Make sure the system you have can grow with your business.

In other words, you review system must be flexible enough to change with the needs of the company and/or any technological advancements etc.

Tip#5: Link the performance review to your company's strategy

Improving performance must be done in line with the company's overall goals.

In other words, you must measure performance in determining whether or not the company has achieved its goals for the period in review.

Gear your employees' performance to contribute to the company's overall success.

*Those were 5 tips on designing an effective performance appraisal system.

To learn more great tips on performance appraisals/reviews, subscribe to the Practical Guide to Human Resources Management today. 

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